Bank Al-Maghrib (BAM) and the Central Bank of the United Arab Emirates (CBUAE) have signed two memoranda of understanding (MoUs) to strengthen cooperation in banking supervision and Islamic finance. The MoUs were signed by BAM's Wali, Abdellatif Jouahri, and CBUAE's Governor, Khaled Mohamed Balama, at the CBUAE's headquarters in Abu Dhabi. The agreements aim to improve the efficiency of cross-border financial transactions between Morocco and the UAE.
The first MoU focuses on enhancing cooperation in regulatory and prudential matters, exchanging supervisory information on banks and financial institutions, and coordinating prudential practices and regulations. The agreement also aims to develop cross-border financing compliant with Sharia law, particularly for trade and infrastructure investments. Furthermore, it seeks to strengthen coordination between Sharia governance bodies in Islamic finance.
The second MoU explores the possibility of interconnecting instant payment platforms, national card switching systems, and financial messaging systems between Morocco and the UAE. This aims to facilitate the processing and settlement of cross-border transactions and enable the reciprocal acceptance of national payment cards, subject to regulatory and prudential requirements. The agreement also covers cooperation on central bank digital currencies and their potential use in cross-border payments.
The MoUs also provide for the exchange of expertise in developing central bank digital currencies for individuals and institutions. The agreement enables exploration of their use in cross-border payments between Morocco and the UAE. Additionally, it fosters cooperation on financial technology and regulatory frameworks for virtual assets, including crypto-assets and stablecoins, and associated consumer protection mechanisms.
Abdellatif Jouahri noted that the signing of the MoUs is an important step in consolidating the partnership between Bank Al-Maghrib and the Central Bank of the UAE. He highlighted that this partnership opens up broad prospects for developing cross-border financial transactions and accelerating their processing. Jouahri also emphasized the potential for using central bank digital currencies in payments between the two countries.
Khaled Mohamed Balama stated that the MoUs with Bank Al-Maghrib reflect the UAE's commitment to expanding financial and banking cooperation with Morocco. He added that this cooperation will enable the exchange of expertise in supervision, develop Islamic finance solutions, and explore possibilities for strengthening interconnections between payment systems. This, in turn, will contribute to a more efficient and innovative financial sector and support economic and commercial relations between the two countries.
The agreements between Bank Al-Maghrib and the Central Bank of the UAE are expected to enhance the efficiency of financial transactions and strengthen cooperation between the two institutions. The MoUs demonstrate the commitment of both parties to fostering a more integrated and innovative financial landscape in Morocco and the UAE.
Key points
- Bank Al-Maghrib and the Central Bank of the UAE have signed two MoUs to enhance cooperation in banking supervision and Islamic finance.
- The agreements aim to improve the efficiency of cross-border financial transactions between Morocco and the UAE.
- The MoUs provide for the exchange of expertise in developing central bank digital currencies and cooperation on financial technology and regulatory frameworks for virtual assets.
